This article is about how to start palm oil reseller business in Nigeria currently in this year 2023. The palm oil business is one of the most lucrative businesses to venture into and it has the capability to give you an impressive return on investment (ROI).
If you want to become a reseller of palm oil straight out of the oil mills from the manufacturers to your customers or you want to buy from wholesalers and resell for more value to your customers, then this post is just for you as we will outline and discuss the necessary steps on how you can set out to achieve your aim.
Kindly note that although oil palm can be harvested all year round, the palm oil business is not like other types of enterprises as it is a seasonal business with peak and off-peak seasons. The peak season for palm oil is from February through April/May. This is when you would acquire significant volumes of palm oil in the market preparation for the off-peak season.
During peak seasons of the palm oil business in Nigeria, a 25 litre gallon of palm oil might be purchased, either from the manufacturers at the oil mills or from wholesalers for as little as ₦7,000 and sold for as much as ₦20, 000 between July and January, the off-peak season. With that in mind, let us now take a look at the various processes involved in starting your own palm oil reseller business in Nigeria today.
STEP BY STEP GUIDE ON HOW TO START PALM OIL RESELLER BUSINESS IN NIGERIA 2023
The following are the step by step processes on how to start palm oil reseller business in Nigeria this 2023:
MAKE AVAILABLE YOUR CAPITAL FOR YOUR PALM OIL BUSINESS
The amount of capital you will need to start your palm oil reseller business in Nigeria depends on you and the size of the business. Depending on how large or how small you want to start your palm oil business in Nigeria today, it will cost you between ₦100,000 – ₦1 million or more.
The most important thing is to have enough cash at hand when the peak period begins. This is also a business that requires a long term commitment of resources, so keep that in mind when borrowing money from financial institutions or looking for investors.
CREATE A STORAGE SPACE FOR YOUR PALM OIL
You will need to make available a large space, somewhere that is cool, dry, and secure to store your palm oils while you wait for the off-peak period when you can resell the palm oils at even greater value to make significant profits. You might make do with a room in your house that you don’t use very often or rent a space that you can use. You will also require a couple of 25-litre gallons for storing the palm oil, and ensure that they are well secure to avoid your goods from being stolen.
FIND A RELIABLE SOURCE FOR YOUR PALM OIL
During the peak season of palm oil production in Nigeria, places like Delta State, Bayelsa State, Imo State, Rivers State, Abia State, Akwa Ibom, Ondo State, Edo State, and Rivers State sell palm oil at cheap rates. It is very important to purchase high-quality palm oil from a reliable source so that it will be very easy for you to find consumers to sell to when the need arises.
FIND BUYERS FOR YOUR PRODUCT
As we have earlier mentioned, it is best to wait for the off-peak period which typically begins in July, before beginning to market your palm oil, this will get you a higher income than when you sell in the peak period when palm oil is readily available. Many food companies as well as FMCGs and pharmaceutical companies need palm oil, so target them as well as the local buyers in your area where there is high demand for the products.
USES OF PALM OIL
Palm oil is utilized for a variety of purposes, making it a very popular and in-demand product. It can be used for a variety of things, including:
- Palm oil is often used as a cooking ingredient since it is high in vitamins, especially vitamin A and important elements.
- Palm oil is used in the production of a variety of products, including cosmetics, food, and personal care items.
- Palm oil is also utilized in the production of several medications, such as vitamin supplements.
- Palm oil is important in the production of pet food.
- Palm oil products and by-products are likewise highly sought for on the worldwide market, hence they can be exported for revenue generation.